Euro$ interest rate options: mostly bearish positioning Euro$ interest rate options: mostly bearish positioning has prevailed, though the underlying rate futures are fairly mixed. Among them were a bearish sale of 4k in Green September 76/78/81/83 call condors (possible position roll), along with a 5k purchase of Green June 75/77/80 put trees and a puchase of 15k in Front December 87/88/90 put butterflies. On the bullish side was a purchase of 10k in December 92/95 call spreads vs a sale of December 90 puts. The lead June 2015 contract is a half-tick higher at 99.605, while the deferreds are 1-2 ticks firmer on the nearby dates, but 1-2 ticks lower at the back-end.

Treasury Action: yields drifted lower Treasury Action: yields drifted lower following the drops in Philly Fed and LEI data, which came in below more upbeat expectations, while stocks have skipped a beat as well, trading lower but for the NASDAQ. There apparently was also a NY think tank report floated on preparations for a "dirty exit" by Greece from the Eurozone that preyed on investor fears for the region. The T-note yield eased briefly under 2.08% compared to session highs of 2.102% and lows of 2.043%, with the 50% retrace of 2.08% proving sticky for now.

FX Action: The dollar edged slightly lower FX Action: The dollar edged slightly lower after the Philly Fed and leading indicators misses, though reaction was muted. EUR-USD edged over 1.1380 from 1.1370, as USD-JPY fell to 118.90 from 119.00. Wall Street remains lower, with yields off their highs.